Utah Foreclosure Laws

If you are currently behind on your mortgage or facing foreclosure, it is important to understand the foreclosure laws in Utah. Utah recognizes both judicial and non-judicial foreclosure processes. The main security instrument used in Utah is the Deed of Trust. Even though the term mortgage is used most often, the chances are if you have financed your home in Utah you have a Deed of Trust. With a Deed of Trust, the non-judicial foreclosure process is used. Below I have described, generally, how the mortgage default and non-judicial foreclosure process works.

Mortgage Default
When you originate a mortgage, you agree to make monthly installments to pay back the loan over a specified amount of time. A date is specified as to when the monthly payment is due. Most Utah mortgage lenders give borrowers a 10-15 day grace period in which the borrower has to make the payment. If payment has not been received within 30 days you will probably receive a call from your lender reminding you that your payment is late and that a late charge will be assessed to your account. After 45 days most lenders will start a formal collection process and the phone calls will start to roll in. Between 60 and 90 days if payment has not been made, your lender will assume that you have defaulted on your loan and will turn your account over to an attorney to begin formal foreclosure proceedings. If you reach this stage, it's essential that you understand Utah foreclosure law.

The Foreclosure Process
The formal foreclosure proceedings begin when your lender instructs a trustee (usually an attorney) to record a Notice of Default with the county recorders office. From the time that the notice is recorded you have a 90-day reinstatement period. During this time, you still have the ability to bring the loan current by paying all the back payments along with late charges, interest, attorney's fees etc. This is known as reinstatement. After the 90-day reinstatement period the trustee will usually record a Notice of Trustees Sale. This starts the final right of redemption period, which lasts three weeks. During this time, notice is placed on the property and in a regularly circulating newspaper for three consecutive weeks, giving the time, date and location of the trustees' sale. After the final right of redemption period the property is sold at auction to the highest bidder.

Lenders do not want to foreclose. They are in the business of lending money not owning property. Due to costs of the foreclosure process it is usually in the lenders best interest to consider options to help you become current or allow you the time and ability to sell your home prior to foreclosure. Learn more about foreclosure prevention options.

Research Utah Foreclosure Law Further

If you have questions about the foreclosure laws in Utah, please contact me.

DISCLAIMER: This site provides information about foreclosure law designed to help users safely cope with their own legal needs. But legal information is not the same as legal advice. The application of law varies with an individual's specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation